Business Ethics (CSRWire)

The Science of Citizenship

Screen Shot 2015-12-09 at 3.44.06 PM A breakdown of Lockheed Martin’s innovative approach to ethics and sustainability. By Elliot Clark As a technology company, Lockheed Martin’s annual sustainability report is aptly titled, The Science of Citizenship, viewing the practices of ethics and sustainability as a science. After all, this is a company defined by its engineers and scientists who seek a rationalized and explainable view of the universe. But to describe the ethics and sustainability program at Lockheed Martin as science alone does not quite do justice to the amount of art in this award-winning and highly integrated management effort. I have known Leo Mackay, the fi rm’s vice president of ethics and sustainability and chief ethics officer, for a few years. Recently, I had occasion to sit and talk with him about how Lockheed Martin, a company of more than 126,000 employees and 16,000 suppliers, has been able to operate without some of the blemishes and scandals that have plagued other global brands.

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Holding to Account

PwC’s CEO Bob Moritz on his gold standard of corporate governance: employee engagement.

By Dirk Olin

Robert (Bob) E. Moritz has been with PricewaterhouseCoopers LLP, (the U.S. member of PwC International Limited) for more than a quarter of a century. He became a partner in 1995 and was elected to a four-year term as chairman and senior partner in 2009.

Before assuming that role, he served as the asssurance leader of the U.S. firm from 2006 to 2009 and managing partner of the New York Metro region from 2004 to 2006. From 2001 to 2004, he led the U.S. firm’s financial services audit and business advisory practice, which includes the banking, capital markets, insurance, investment management, and real estate sectors. From 1998 to 2001, he served as the metro regional financial services leader. In the early 1990s he served a three-year tour with PwC Japan in the Tokyo office, providing audit and advisory services to multiple European and U.

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Apples to Apples

America’s most transparent large-cap companies—sector by sector.

By the Editors

Welcome to the second annual set of “Industry Sector Best Corporate Citizens” lists. For these compilations, we use the same methodology as the “100 Best Corporate Citizens List,” with one additional data slice. The Best Corporate Citizens database comprises publicly available data from Russell 1000 companies collected and analyzed by IW Financial, a Portland, Maine-based financial analysis firm.

For the “Industry Sector Best Corporate Citizens” lists, we identify the industry sectors with high representation among the Russell 1000, our starting universe for our database. We then narrow those to 10 and apply the same review process to the companies on those lists.

The methodology collects 324 data elements in seven categories: climate change, employee relations, environment, financial, governance, human rights, and philanthropy.

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Oversight Overhaul

For better boards, better to exit the boardroom.

By Paul Strebel

The repeated failure of boards to intervene early enough to avert corporate disasters reflects a serious problem in the boardroom that cannot simply be swept under the carpet. The improvements in corporate governance made so far after each crisis have failed to address a fundamental weakness: Boards are too often out of touch with those who can make or break a company.

A disconnect hampers the relationship between the world inhabited by CEOs and board directors on the one hand, and the real world of customers, suppliers, employees, and society at large on the other. The world of CEOs and board directors is made up largely of other CEOs and top executives; in a repetitive routine, they interact mainly with one another, with management, and occasionally with analysts, consultants, and government officials.

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Social Capitalism

CR leaders help corporations be people, too.

By Stephen Jordan

Has anyone else been puzzled by how much corporations are distrusted? Between the tone of some campaign platforms and a recent Public Affairs Council poll showing 44 percent of Americans have little or no trust in major companies, this is an increasingly important issue, particularly since corporate leaders consistently identify trustworthiness as vital to their brands. Corporate responsibility officers (CROs) have a critical role in bridging this divide.

When a private enterprise is labeled a corporation, trust plummets—even though the term merely connotes conformance with a certain legal structure. Some might argue that this disparity in trust is a question of semantics since “business,” as a descriptive term, is generally liked. (“Small business” is practically loved.) But other issues here need to be addressed.

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Fuller Disclosure

Little by little, the windows are opening.

By Zoe Tcholak-Antitch

New Carbon Disclosure Project (CDP) analysis shows that S&P 500 companies are making significant strides in transparency and progress toward carbon goals when compared to the Global 500. The results highlight a tipping point in the actions being taken in American C-suites and boardrooms to integrate a sustainability agenda into overall business strategy despite a lack of comprehensive regulatory requirements in the United States.

The CDP S&P 500 Climate Change Report, released in September and co-written by CDP and professional services firm PwC, on behalf of 655 institutional investors representing $78 trillion in assets, provides an annual update on greenhouse gas emissions data and climate change strategies at America’s largest public corporations.

It reveals that the average disclosure score, calculated by CDP to reflect each company’s transparency on climate change, has increased by 13 percent, and the average disclosure score required by companies to achieve a position in the Carbon Disclosure Leadership Index (CDLI) has increased by 11 percent to 92.

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The Transparency “Super-Pac”

Why sustainability reporting is on the rise.

By Mike Wallace

‘Tis the season for politics, and this year’s COMMIT!Forum is bringing together all sides in what is being billed as the Right-Left Unconvention. Having partnered closely with the forum organizers (i.e., this magazine) since GRI re-opened its doors in the United States, we are very excited to play a part in this year’s event. In fact, we’re incredibly honored to not only have the magazine’s parent company (SharedXpertise) as one of our GRI Organizational Stakeholders (OS), but also grateful for all their added support around transparency.

As most of you know, GRI’s Focal Point USA was officially launched in January 2011 at the New York Stock Exchange (NYSE). We drew more than 200 attendees, and at the event we distributed a list of all known GRI Reporters in the U.S. and Canada.

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Good Work, Good Worker

The organizational responsibility-individual engagement equation.

By Melissa Herrett

As Millennials continue to enter the workforce at an increasing rate, organizations must adapt their engagement policies to incorporate the engagement drivers for this generation. Millennials, more than other generations, have a strong desire to work somewhere that both makes a difference in the world and is dedicated to the community outside of the business. According to a study conducted by Cone Millennial Cause Group and published in Forbes, 80 percent of 13 to 25 year olds interviewed want to work for a company that cares about how it impacts and contributes to society. These individuals are the working population of the future; thus, corporate responsibility is quickly evolving from a buzzword to a necessity for attracting, engaging, and retaining this younger population.

Avatar HR Solutions’ research found that 70 percent of employees believe their organization is responsible in the community, indicating that many leadership teams are already making efforts to increase their CR initiatives and dedication to the world outside their business.

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